The proposed Jingle Muguashan Coal mine has about 56 million tons of raw coal and supposed to be operative in 2008 and will generate substantial positive cash flow in 2009. They started the permit process in Sept’07 and still aggressively pursuing it. They are also actively interacting with various financial authorities. That increased my confidence that the permit approval could come any time this year. The coal mine would immediately increase the resource potential to nearly $6 billion at current raw coal market price.
The purchasing price is $60M, half will be debt and half will be equity financing as they told in CC during Q&A session. The permit approval news could easily push the stock above $1.50 level and for $30M equity financing could dilute total O/S by 30 to 50 million. Having that significantly large coal mine, the start up situation could be 130 to 150 million O/S and $40M debt not a significantly huge liability considering the post coal mine business model. The mine could give immediate big jump in net profit margin and Puda could easily increase the coking coal capacity to nearly 6 million MT. That approx about $500M revenue and then it could start the coking business after 2010. I am very hopeful they will get the permit, and a good future coming to Puda as well as for the patience investors.
Market Data 
Markets 
AI
